ICBC obtains conviction in tax fraud scheme

ICBC has obtained a conviction in B.C.’s provincial court for a fraud scheme in which a claimant produced fraudulent tax returns to support the receipt of exaggerated payments for lost wages following a car accident.
Alen Melki of Burnaby, B.C. was charged and convicted through trial of two counts of uttering forged documents, an offence under the Criminal Code of Canada. He was sentenced to four months in jail and ordered to pay $1,500 in restitution to ICBC.
In his written reasons for sentence, B.C. Provincial Court Judge T.J. Gove said Melki’s fraud warranted significant sentencing consequences.
“Attempting to defraud a public insurance program established by the legislature for the benefit of all British Columbians is a serious matter,” Gove wrote. “Melki’s offence was planned, sustained and deliberate. It took place over several months. At many times along the way, he could have abandoned his scheme.
“Although no money was paid to Melki, he caused the insurance corporation to incur unnecessary cost and he was seeking a fairly substantial amount of money,” Gove wrote.
According to an ICBC press release, Melki was involved in a crash at the intersection of Clarke Drive and Venables Street in Vancouver, B.C. on June 19, 2002. Two days later, he attended an ICBC claim Centre to provide his statement.
Melki claimed he was injured in the crash and would be unable to work. He said he was a self-employed painting contractor.
In working towards settling Melki’s injury claim, ICBC requested confirmation of his income and received 2000 and 2001 tax return summaries. ICBC contacted Canada Customs and Revenue Agency (CCRA) to confirm validity of the documents, and was informed that CCRA did not create the documents.
“Melki had provided ICBC with forged tax documents, in an attempt to exaggerate his income and persuade ICBC into paying a larger wage loss claim,” ICBC says.
ICBC estimates that fraud costs each of the province’s 2.8-million policyholders in the range of $100 to $150 per year.